Detroit, Michigan – Electric vehicle sales have been on the rise for Ford and other automakers, although not as quickly as anticipated. This slower growth has prompted automakers to rethink their future electric vehicle offerings and investments, reflecting a changing landscape in the industry.
During a recent media briefing, Marin Gjaja, the chief operating officer of Ford’s Model E electric vehicle business, acknowledged that the growth of EV sales has decelerated. As a result, Ford has decided to discontinue the Model e Dealership Program, which involved approximately half of its U.S. dealers, due to evolving market conditions and discussions with dealers, some of whom had taken legal action against the program.
Instead, Ford plans to expand EV sales to all of its dealerships with the aim of boosting sales of its electric cars and trucks. By allowing more dealers to participate in EV sales and service, Ford hopes to increase its market share and drive sales growth.
Dealers will be required to make investments in charging infrastructure, training, and other EV-related expenses, albeit at a lower cost compared to the previous program, which mandated investments ranging from $500,000 to $1.2 million. Gjaja noted that the initial investment estimates were overstated, with dealers who fully participated in the program averaging around $600,000 in investments.
The shift in strategy by Ford reflects the broader challenges facing the electric vehicle market, as automakers navigate changing consumer preferences, technological advancements, and regulatory requirements. By adapting its approach to EV sales, Ford aims to stay competitive and capitalize on the growing demand for electric vehicles in the market.
Overall, the evolution of Ford’s EV sales strategy underscores the complexities of the electric vehicle market and the ongoing efforts by automakers to position themselves for success in a rapidly changing industry landscape. As the demand for electric vehicles continues to grow, automakers like Ford are making strategic adjustments to seize opportunities and drive future growth in the EV market.